French property group Affine has reduced its net loss to less than EUR 3 mln in 2009 from over EUR 37 mln a year before. In the course of last year, the company's portfolio shed nearly 5% of its value, mostly in the first half, and is currently worth just over EUR 1 bn.
French property group Affine has reduced its net loss to less than EUR 3 mln in 2009 from over EUR 37 mln a year before. In the course of last year, the company's portfolio shed nearly 5% of its value, mostly in the first half, and is currently worth just over EUR 1 bn.
'The commercial real estate market seems to have reached its final stage in terms of decline. However, the economic crisis may continue to negatively impact the financial situation of tenants,' the company said. 'Given these conditions, the group will continue its strategy focused on improving the quality and profitability of its portfolio, continuing to dispose of non-strategic assets, and making targeted acquisitions.'
Affine carried out 'an aggressive policy of property disposals' with EUR 163 mln of sales realised in the course of the year. These were to a large extent offset by EUR 131 mln in investments through acquisitions of retail premises in Arcachon, Nîmes and Paris, and capital expenditures on buildings in the portfolio.
Net Asset Value fell by 14% year-on-year to EUR 241 mln at end-2009, or EUR 29.7 per share. The group's net debt amounted to EUR 693 mln at end-2009, from EUR 754 mln at year-end 2008. Despite the reduction of its debt, the company's Loan-to-value ratio reached 58.1% at end-2009 from 56.6% at year-end 2008, due to the decline in value of its portfolio.
The company is proposing a 2009 dividend of EUR 1.2 per share.